Lithia Motors Inc

Lithia Motors runs car dealerships and calls itself the largest global automotive retailer. As of December 31, 2025, it operated 455 locations selling 54 vehicle brands in the United States, the United Kingdom and Canada. It sells new and used cars, arranges loans and insurance for buyers, and repairs and maintains vehicles after the sale. It was founded in 1946, incorporated in Oregon in 1968 and went public in 1996.

Vehicle sales bring in most of its revenue. In 2025, new vehicles made up 49.7% of the $37.6 billion total and used vehicles made up 35.5%. Aftersales, meaning service, repairs and parts, added 10.9%. Finance and insurance added 3.9%. That slice is small, but the company says it earns higher margins than vehicle sales. Overall profit is still thin: net margin (profit as a share of revenue) was 2.2%. By region, the United States produced 78.5% of revenue, the United Kingdom 18.4% and Canada 3.1%.

Buying dealerships is central to Lithia's growth plan. In 2025 it bought 17 stores and sold 12. It spent $751.0 million on the purchases, net of inventory loans, and expects them to add nearly $2.4 billion in yearly revenue. It also sells online through Driveway.com and GreenCars.com, lends to car buyers through its own finance arm, DFC, and offers fleet management services.

• In Q3 FY2026 (ended Sep 30, 2026), revenue was $9.95B, up 2.8% from a year earlier, and net income was $291.1M (+34.1%).
• For fiscal 2025, revenue was $37.63B (+4.0% year over year; +23.4% a year from FY2020 to FY2025) with a 2.2% net margin.

• Over FY2021–FY2025: $2.29B in buybacks and $248.6M in dividends.
• At least 9 consecutive annual increases: every fiscal year in the SEC data (FY2016–FY2025) shows an increase; the true streak may be longer.
• Regular dividends per share grew +12.3% a year over 5 years (FY2020–FY2025).
• Dividends took 6.7% of earnings and 953.4% of free cash flow in the latest fiscal year.
• Shares outstanding changed -26.7% from Feb 18, 2022 to Oct 28, 2026.

Rank among 1514 US companies

Market value at each year end

Lithia Motors’s market value went from $8.99B at the end of 2021 to $6.24B on Oct 28, 2026, down 31%; since the end of 2025 it is down 23%.

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 8 sales ($423K), 4 of them under pre-arranged 10b5-1 trading plans.

Large shareholders (13G filings)

ETFs with the most weight in LAD

1. Heavy reliance on carmakers and franchise deals. New-car sales depend on franchise agreements with manufacturers. Trouble at a key brand, cuts to incentives or warranty programs, or a strained relationship could hurt sales and profits. New vehicles were 49.7% of 2025 revenue.
2. Carmakers may change how cars are sold. Manufacturers could change how they distribute vehicles. U.S. state or Canadian provincial laws that protect dealer franchises could also be weakened. Either change could shrink the traditional dealer's role and profits.
3. Losses on its own car loans. Lithia lends to car buyers through its finance arm, DFC. If more borrowers default than expected, Lithia absorbs the losses. Growing the loan book also depends on raising enough capital.
4. Growth depends on buying more dealerships. Lithia's plan relies on buying dealerships at sensible prices and folding them in well. In 2025 it spent $751.0 million, net of inventory loans, on 17 stores. Overpaying or poor integration could hurt returns.
5. New EV makers and online rivals. Tesla and Rivian, plus carmakers from China and India entering the U.S., sell vehicles Lithia has no franchise for. Online rivals add pressure, and Lithia's digital bets may not pay off.
6. Car sales rise and fall with the economy. Vehicle sales are cyclical. High interest rates and vehicle prices raise monthly payments. Weaker consumer spending or tighter credit can cut sales and margins across new cars, used cars, service and financing.

• Oct 21, 2026 Quarterly results released; Other company announcement
• Sep 25, 2026 Executive or board change
• Jul 29, 2026 Quarterly results released; Other company announcement
• May 1, 2026 Shareholder vote results
• Apr 29, 2026 Quarterly results released; Other company announcement
• Mar 4, 2026 Major agreement signed
• Feb 20, 2026 Bylaws or fiscal year changed
• Feb 13, 2026 Executive or board change
• Feb 11, 2026 Quarterly results released; Other company announcement

Lithia pays a small but growing dividend. It has raised the payout at least nine years in a row. Dividends per share climbed from $1.22 in 2020 to $2.18 in 2025, about 12.3% a year. The dividend took just 6.7% of 2025 earnings. But free cash flow (cash left after capital spending) was only $5.8 million that year, so dividends were more than nine times larger. The yield was 0.82% as of October 28, 2026, which is low for an income portfolio. Lithia returns far more through buybacks: $2.29 billion from 2021 through 2025, against $248.6 million in dividends. The share count fell 26.7% between February 2022 and October 2026.

The stock has fallen hard in downturns: 91.5% in the 2008 financial crisis, 51.5% in the 2020 COVID crash and 41.1% in the 2022 bear market. It took 30, 2.5 and 24.6 months after each low to regain its prior peak. Single stocks carry more risk than diversified funds.